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ABC Corporation can sell $1,000 face value bonds with a coupon rate of 6% for $975. The bonds mature in 10 years and pay interest
ABC Corporation can sell $1,000 face value bonds with a coupon rate of 6% for $975. The bonds mature in 10 years and pay interest annualy. The company's marginal tax rate is 30%. The risk free rate of return is 2%. What is the company's after-tax cost of debt for purposes of calculating the company's weighted average cost of capital? O A. 5.82% B. 4.44% OC. 4.93% D. 6.19%
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